How Much Car Insurance to Carry

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How Much Car Insurance Should I Carry?

Remember that buying car insurance is like going to the casino: the odds are always stacked in favor of the house. Car insurance companies understand the odds. Their business is built on ensuring that they collect more premium dollars from their clients than they ever pay out in claims. This is the bottom line.

And, in fact, you should be happy to hear that your car insurance company is making money. The better job they do of playing the odds, the better the chance that they will be able to pay out your claim when you need the money.

If your car insurance company goes broke just when you need them, you've lost.

Therefore, your decision to pick a car insurance company must be based on a number of factors, including the car insurance company's stability and your level of tolerance for risk. Just remember: The car insurance company is always going to be charging you based on a model which makes money for them.

Why would you shop around if you were happy with your insurance company? Well, the fact of the matter is that exactly the same coverage can cost you widely different amounts, depending on your insurance company.